Work in Progress (WIP) Tracking

Overview

Work in Progress (WIP) represents billable time and expenses that have been incurred but not yet invoiced to clients. Tracking WIP is essential for understanding revenue pipeline and managing cash flow in professional services.

What WIP Includes

• Unbilled attorney/consultant time
• Unbilled expenses
• Work completed but not invoiced
• Time entries awaiting approval
• Expenses awaiting client billing

Why WIP Matters

Cash Flow

High WIP = delayed revenue realization

Revenue Recognition

GAAP accounting requires WIP tracking

Collection Risk

Older WIP less likely to be collected

Client Relationship

Large WIP balances may indicate communication problems

Operational Health

Excessive WIP signals billing inefficiency

Healthy WIP Management

Best Practices:

• Bill promptly (monthly or more frequently)
• Monitor aging of unbilled time
• Set WIP thresholds that trigger billing
• Regular client communication about work performed
• Clear billing arrangements upfront

Targets:

• Keep WIP under 60-90 days
• Bill within 30 days of work completion when possible
• Track WIP by client and matter

Time Tracking Connection

Accurate WIP requires:

• Timely time entry (don't delay recording)
• Accurate client/matter coding
• Proper expense categorization
• Regular timesheet approval
• Integration with billing system

WIP Reports

Common reports:

• Total WIP by client
• Aged WIP (30/60/90+ days)
• WIP by attorney/consultant
• WIP by practice area
• WIP trend over time

Pricing

Free metric — WIP tracking is built into most legal/professional services billing software.